We're seeing more defensive sectors climb the leaderboard as the outlook for the U.S. markets weakens.
Perhaps an element of interest is to consider the areas of the market with the lowest overall correlation to macro conditions. Areas like Energy $XLE and Utilities $XLU are sporting the lowest correlation, with XLE not being correlated at all to the broader movements in the S&P 500.
This data is shown in the chart below.
For nimble traders and investors, there are still opportunities, albeit more difficult in a tape like this.
By focusing on low correlated areas of the market, it can reduce our overall risk in an uncertain market environment.
